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STATE OF NEW JERSEY ON THE COMPLAINT OF THE COMMISSIONER OF BANKING ANDINSURANCE, APPELLANT, v. COMMUNITY HEALTH SERVICE, INC., RESPONDENT.

Where a corporation contracts with licensed physicians under which the latter agree to render professional services in accordance with the terms of the contracts, for a certain stipulated compensation, to those members of the general public who contract with the corporation, for a specified sum of money, for the services of a doctor, the physicians receiving their compensation whether or not they render services, the subscribers being entitled to a physician's services whether or not they are needed, and the corporation not undertaking to pay such debt as the subscriber may incur for medical services, such contract is not one of insurance, and the business of the corporation so contracting cannot be construed as the business of insurance.

PER CURIAM.

The judgment under review will be affirmed, for the reasons expressed in the opinion of Judge Oliphant.

For affirmance — THE CHANCELLOR, CHIEF JUSTICE, BODINE, DONGES, HEHER, PERSKIE, PORTER, COLIE, DEAR, HAGUE, JJ. 10.

For reversal — CASE, WELLS, RAFFERTY, THOMPSON, JJ. 4.

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STATE v. COMMUNITY HEALTH SERVICE, INC
(Jan 22, 1943)